United Internet Maintains 2026 Outlook Amid Restructuring Initiatives at 1&1 and IONOS

United Internet AG has announced comprehensive transformation and restructuring initiatives across its subsidiaries, 1&1 AG and IONOS Group SE, resulting in approximately 800 job reductions globally. These measures are designed to enhance operational productivity, bolster competitive positioning, and ensure future resilience.

At the corporate level, United Internet anticipates one-off restructuring expenses of 95 million euros for fiscal year 2026, which will weigh on earnings. However, these costs will not affect the company’s operating EBITDA guidance, which remains at approximately 1.45 billion euros for the year.

The conglomerate continues to project sales of roughly 6.45 billion euros and capital expenditures between 600 million and 650 million euros for 2026. Upon completion of the programs, anticipated annual cost savings of approximately 55 million euros will be reinvested into the company’s ongoing development.

1&1 has unveiled a restructuring plan specifically targeting its business customer subsidiary, 1&1 Versatel. The initiative involves streamlining management structures and flattening hierarchical levels, reducing headcount from approximately 1,350 to around 1,000 full-time employees. Alongside existing partial retirement agreements, the company will commence discussions on the framework of a voluntary severance program.

1&1 expects to incur one-off costs of approximately 60 million euros in 2026 due to this transformation. The program is projected to contribute roughly 25 million euros to annual earnings starting in fiscal year 2028. Consequently, the subsidiary now forecasts EBITDA of approximately 740 million euros for the year, while the remainder of its outlook is unchanged. Adjusted EBITDA is still expected to hover around 800 million euros.

Meanwhile, IONOS is implementing a workforce reduction that will shrink its full-time employee count from approximately 3,800 to around 3,350. The cuts will be distributed evenly between domestic and international operations and will primarily be executed through voluntary redundancy programs tailored to the specific requirements of each country.

IONOS expects one-off restructuring expenses of roughly 35 million euros, concentrated mainly in the fourth quarter of 2026. Beginning in 2027, the company anticipates annual cost savings of up to 30 million euros from the program. IONOS has reaffirmed its adjusted EBITDA outlook of 530 million euros for the current fiscal year.

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